Russian

1
Introduction
Over 70,000 Russian-state owned enterprises were privatized in 1992. A substantial number of the private buyers were from the United States and Western Europe. The reason that drove this “government” decision was to move from a centrally planned economy to a market system.
A weakening economy in the late 1990s made the government move back towards state owned enterprise.
Prospects of deprivatization have on investment by managers of privatized firms The prospect of deprivatization of private enterprise will likely impact the privatized managers. The fear of losing their position will likely alter their behavior, and affect the manner in which they make decisions or choices. It is possible that “unhappy” managers may be; less productive.
Effects of deprivatization on foreign investments in Russia Foreign investors may be hesitant to invest in Russia because deprivatization will revert back all property rights to the state, and in central planning government decides how to use its resources. Property rights therefore are not assigned to a specific person, nor can those rights be transferred; they are not alienable. This is opposed as to what occurs in a free market whereby private enterprises decide on how to use resources. In a privatized setting, the property rights that are owned by the firm are assigned to a specific person(s) and can be transferred, as in sale of the firm and its assets; property rights are alienable. A detrimental effect that may result from escalating deprivatization of…...

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